Adopted 2024-25 Budget

Budget Summary of Changes

The budget represents a significant decline compared to the previous year due mainly to the cessation of most 2023 federally declared disaster road repair projects. These federally declared disaster projects are up to 94% reimbursed by the federal and state partners: Federal Emergency Management Agency (FEMA), Federal Highway Administration (FHWA), and California Office of Emergency Services (CalOES). However, the volume and frequency of such disasters, combined with delays in reimbursement payments, require the County to issue debt until reimbursements are received. Therefore majority of the estimated remaining $60 milIion in 2023 projects have been paused until funding is available. For the Planning Division, the budget includes a contract amendment for the Recovery Permit Center (4Leaf) increasing the budget by $600,000 and extending the term to December 31, 2024, to transition services back to County staff. The budget also includes increasing three consulting plan check contracts from $50,000 to $200,000 each and implementing the Third-Party Plan Check program, allowing applicants the option to use third-party plan check review. Both programs will serve to reduce buildering permit plan check times.

The budget recommends a net reduction of 7.75 Full Time Equivalent (FTE) positions. The Capital Projects and Real Property Division is moving to the General Servies Department, removing 10.0 FTE positions, including 1.0 FTE Director of Capital Projects, 1.0 FTE Chief Real Property Agent, 1.0 FTE Real Property Agent, 2.0 FTE Assistant Real Property Agents and 4.0 FTE Project Managers. These reductions are offset by the addition of 1.0 FTE Code Compliance Investigator and 1.0 FTE Accounting Technician for the Recycling and Solid Waste Enterprise and a 0.25 FTE increase to a Board Clerk position dedicated to the Santa Cruz County Sanitation District.

Supplemental Budget Summary of Changes

The Supplemental Budget allows for the relatively modest continuation of 2023 storm disaster road projects by leveraging bond proceeds while planning to pay down debt that was issued to sustain cash flow while the County awaits reimbursements from its federal and state partners for projects already completed. The budget provides for up to 13 projects to start construction in Fiscal Year 2024-25, 19 to be designed and several others have minor budgeted closeout and re-vegetation costs for recently completed projects. Together, these new projects commit the County to an estimated $26 million worth of costs over several fiscal years. Details can be found in the attachment below.

The Supplemental Budget pays down an internal County loan from the Worker’s Compensation Fund for 2023 storm disaster road projects completed and a debt service payment for new projects budgeted in Fiscal Year 2024-25. In addition, the budget includes approximately $600,000 of expenses for 2017 storm disaster road projects due to increased confidence in federal reimbursement obligations.

Finally, the Supplemental Budget adds 1.0 FTE Accounting Technician position to assist in work necessary to obtain reimbursements for disaster projects.

Last Day Budget Summary of Changes

The Last Day Budget adds $45,000 in expenditures and a transfer in from the General Fund from Board-directed spending as follows: District 1 - $20,000 for East Cliff Dr Bike and Pedestrian Safety Improvements and $5,000 for Community Road Patching Materials; and District 5 - $20,000 for Big Basin Water Wastewater Treatment- Community Service Area 7 Zone 2 support.

Adopted Budget Summary of Changes

The Adopted Budget adds $56,245,281 in expenditures and $39,237,433 in revenue. The changes are from $38,887,433 in 2023-24 revenue agreements and $23,147,161 in related appropriations that continue into 2024-25. Additional changes include $33,098,120 in 2023-24 unspent contract expenditures that continue into 2024-25. And they also include 2024-25 concluding budget actions that adds $350,000 in revenue.

District Sales Tax Contribution

Planning

The District Sales Tax contribution of $2,000,000 funds Unified Permit Center staffing and activities, policy and development review services, and code enforcement to address the acute housing crisis in unincorporated areas. This is part of the existing General Fund contribution to Planning but is being shown separately beginning in 2024-25.

Housing Fund

The General Fund Contingencies budget includes a new District Sales Tax contribution of $400,000 for affordable and supportive housing projects in unincorporated areas. This contribution will be transferred to the Housing Fund in 2024-25 as needed.

Roads Fund

The District Sales Tax contribution of $1,000,000 funds a portion of the Soquel Drive Buffered Bike Lane and Congestion Mitigation Project, which will improve transportation along a 5.6-mile stretch of Soquel Avenue/Drive. This is part of the existing General Fund contribution to the Roads Fund but is being shown separately beginning in 2024-25.

In addition, the General Fund Contingencies budget includes a new District Sales Tax contribution of $1,000,000 for emergency road repair this winter. This contribution will be transferred to the Roads Fund as needed.

FY 2024-25 Public Works Capital Infrastructure — Project Details

Open the Services Overview or Operational Plan Objectives below for more details.